French poultry group LDC and French diversified agricultural group Sofiprotéol are forming an alliance to help the two companies become stronger in the competitive European markets. The companies seek to capitalize on their expertise, excellence and capacity for innovation.
The objectives of the two partners include reconquering the domestic poultry market, reinforcing LDC’s position in the European poultry industry, and to reinforce the position of Sofiprotéol’s Sanders Division in the fields of animal nutrition and production.
“This planned alliance illustrates our strategy to develop different sectors in the French food industry,” said Jean-Philippe Puig, CEO of Sofiprotéol. “We are thus making a major contribution to reviving the poultry sector by reinforcing our position as a leader in animal nutrition and production. And by working together, our two groups will be able to accelerate their international development.”
Combined poultry operation leads to creation of new company
The proposed alliance between LDC and Sofiprotéol includes the sale to LDC of the poultry slaughter and processed products activities of Sofiprotéol’s Animal Products Division, which includes five production sites with a turnover of EUR310 million (US$396 million) and staff of nearly 1000 people.
The sites acquired will be combined with the six LDC sites in Brittany to form a new company: Société Bretonne de Volaille.
It is also planned that LDC will acquire the site in Blancafort, which achieves turnover of EUR20 million (US$26 million) and employs 125 people, its supply being assured by the Clémont site (Sanders Animal Nutrition).
More than EUR100 million (US$128 million) will be invested during the next five years at all the sites concerned.
Denis Lambert, chairman of Groupe LDC, stated: “Our planned alliance constitutes a strong signal to the French poultry sector. It reflects the mobilization of two major actors in the food industry who wish to focus on a common goal, which is to ensure that long term, this sector can win back domestic markets and develop internationally.”
Sofiprotéol to acquire non-poultry feed operations from LDC
Sanders, a division of Sofiprotéol, will acquire non-poultry feed processing activities from LDC and will also supply LDC with poultry feed.
Sanders is planning to make industrial investments worth EUR75 million (US$96 million) in its animal nutrition and production facilities during the next five years.
LDC will pay cash for the poultry sites it is acquiring, while Sofiprotéol will a small stake in LDC and obtain a seat on its supervisory board.